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The FxPro Analyst Team

Forex: A Brief Look at Gold

Gold has made significant gains throughout 2017 along with several retracements. The rally that started in July has encountered a significant correction in September. This recent correction comes after the market began to show less concern over North Korean/U.S. tensions, with investors "abandoning" the safe-haven as risk-on sentiment returned. The Fed’s hawkish position has also helped put more pressure on Gold with the break of $1,300. Gold has now settled back towards the 50-day moving ...

The FxPro Analyst Team

Forex: War of Words Escalates

It did not take long for North Korea to react to President Trump’s recent address to the United Nations General Assembly. Kim Jong-un had responded with a personal statement where he said he was considering retaliating at the “highest level” following Trump’s warning that the US would “totally destroy North Korea” if Washington was forced to defend itself or its allies. This comment was subsequently followed up by comments from North Korea’s Foreign Minister, Ri Yong-ho, who said “Pyongyang ...

The FxPro Analyst Team

Forex: Fed Holds Rates for Now But…

Unsurprisingly, the Federal Reserve kept rates on hold following the end of its 2-day meeting on Wednesday. They did, however, indicate that one more hike is possible before year-end. The recent drop in inflation appears to not have unsettled the policymakers, with Fed Chair Yellen commenting “What we need to figure out is whether the factors that have lowered inflation are likely to prove persistent” if they do “it would require an alteration of monetary policy”. In justification of the ...

The FxPro Analyst Team

Forex: All Eyes on Fed

The markets are little changed overnight as they await the outcome of the 2-day Federal Reserve meeting that ends today. Many will be focusing on the Fed’s description of inflation in their policy statement as the US is confronted with tepid inflation well below the Fed’s target of 2%. A change in economic policy will signal the likelihood of rate hikes before the end of the year. Many are expecting a rate hike in December, with the CME FedWatch tool showing the likelihood of a December hike ...

The FxPro Analyst Team

Forex: Interest Rates in Focus

On Monday, at a speech at the International Monetary Fund in Washington DC, Bank of England Governor Mark Carney stated that any increases in UK interest rates in the future will be both “gradual” and “limited”. He commented that "some withdrawal of monetary stimulus is likely to be appropriate over the coming months" to help return inflation to its 2% target. Recent comments from members of the Bank of England’s Monetary Policy committee appear to suggest the possibility of a hike in rates ...

The FxPro Analyst Team

Forex: US Data Fails to Impress

On Friday, the US Commerce Department released Retail Sales showing a drop of 0.2% in August, the biggest decline in 6 months. The markets had expected a decline resulting from both Hurricanes Harvey and Irma. The Commerce Department commented that it could not isolate the impact of Hurricane Harvey on retail sales, it did receive indications from companies that the hurricane had “both positive and negative effects on their sales data, while others indicated they were not impacted at all.” ...

The FxPro Analyst Team

Forex: A Stronger Picture for the UK?

North Korea fired another missile over Japan into the Pacific Ocean on Friday. The regimes defiance towards recent UN sanctions has had a mooted effect on the markets as many are growing accustomed to Pyongyang’s actions. In an unsurprising move on Thursday, the Bank of England's Monetary Policy Committee voted 7-2 to keep UK interest rates at 0.25%. The minutes of the meeting commented that there is a "slightly stronger picture" for the UK Economy with a strong labour market, continued ...

The FxPro Analyst Team

Forex: UK Unemployment at 42 Year Low

UK unemployment fell to its lowest level since 1975, data on Wednesday revealed. Unemployment fell by 75K, bringing the unemployment rate down to 4.3% (from 4.4%). Wage growth was unchanged from the previous release at 2.1%, but recent inflation data of 2.9% shows wage growth is clearly not keeping up. A strong labour force is helping UK growth but the specter of a rate hike, to keep inflation near to the Bank of England’s 2% target, has the markets concerned, although many do not see an ...

The FxPro Analyst Team

Forex: US Equities at Record Levels

US equities closed at record levels on Wednesday, as improved risk-on sentiment returned to the markets and news that the US economy will benefit if the US tax reform is passed. US Treasury Secretary Mnuchin stated on Tuesday that “tax reform could be backdated to January 1st, 2017 as it would be a "big boon for the economy." He also commented that the Trump administration was "super focused" on ensuring tax reform would be completed by the end of the year. Such comments helped the supported ...